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Very helpful. I now know why I was getting paid 25% less than a peer in vhcol lmao. Kind of a crazy adjustment. CMAAS COL adjustments are like 10% and EY 25%
Pro
This is how most places do it. NYC and DC are peers on cost of labor now, even though DC is cheaper.
It’s because of the Pentagon audits driving up the market value of an accountant in the DC area. Federal accounting is a specialized industry so it pays a premium above other accounting fields, and even if you don’t work fed/GPS, the need for accountants to enter a specialty field that exists mainly in one geography drives up the overall labor cost for our industry.
More reasons it’s much better to live in DC — get paid the same and have less costs.
Also Boston has always been MCOL. The cost of living is high there, but wages are relatively low.
Miami as LCOL makes sense as well — bunch of people moved there for the pandemic and work remotely for other states. Doesn’t increase market value of wages but does very much so increase the cost of living.
Anyway, if you’re familiar with the various accounting labor markets in some of these cities, most of the 'huh?' ones make a lot of sense. Especially with the yellow highlight saying some markets get an additional adjustment.
Rising Star
EY10 — yeah. Largely caused by the WFH trend is what I was saying. Not fair to people who have lived there for years.
Does it mean Atlanta and Miami are LCOL based on this chart?
And Austin. Lul.
Chief
Is this how comp is adjusted based on COL?
Chief
Thank you. Very useful info
Same with kpmg too
That makes so much and at the same time so little sense. How is Boston in Tier 2 lol. In what world is this crazy city cheap?!
And so many of them can’t walk and chew gum at the same time.
Guess it’s time for me to leave NYC and move elsewhere that’s 25% cheaper for a 5% pay cut
I don’t know why Boston gets treated as MCOL - it may not be a SF but the property, taxes, child care, parking are some of the highest in the nation.
So moving from a Geo 3 zone to a Geo 1 zone would result in a 20% decrease in salary I assume?
Yes. It may not be right away but every new year your comp is based on the col. This is FY23 version so there can be a change in FY24.
How is Seattle on the same level as NYC??
Damn
This is not true in my experience and seems more like high level guidance. I do a lot of salary sharing with my peers and NYC gets paid a lot more than any office east of the Mississippi (e.g., DC, Boston). Not just 10 percent higher (even when people in the same role lack a degree in NY)
I don’t think these guidelines are black and white. I’m from the Bay Area, which is the highest tier, and I’ll see EY people on FB posting tax salaries that are just as high, if not even higher, than how much I know my colleagues make
https://www.businessinsider.com/great-salary-convergence-remote-work-professional-pay-tech-silicon-valley-2022-8
Actually, it looks like they combined what used to be the lowest 2 bands into what is now Zone 1, and split CA into it's own Zone. Years ago, the highest band/zone included NY, NJ, CT, CA.